If you have REAL ESTATE investments, you are likely MISSING this tax savings.

ELEVATE YOUR CAP RATE via this tax loophole!

Everyone likes the tax benefits of real estate, but few talk about this huge one that is more relevant NOW than EVER.

***Thread***
1) For tax purposes, real estate costs are deducted over the useful life of the property.

All that means is if you buy a $1M property, you don’t get a $1M deduction the year you buy. You take it over 27.5 or 39 years depending on property type.
2) If you think about in terms of net present value, you will eventually deduct the full $1M, but it’s spread out for decades, significantly diminishing the tax benefit.
3) Most other assets are deducted faster than real estate.

Most are around 7 years rather than 27.5 or 39.

Acceleration of deductions can significantly increase the net present value of tax savings.
4) While most assets are deducted over 7 years, right now as part of recent tax reform, these shorter lived assets (anything under 20 year property) can actually be deducted in the year of purchase!

So that increases NPV even more!
5) What does this mean for your real estate?

When you buy a property, some of it is NOT be structural to the property: movable walls, appliances, various fixtures, lighting, etc.

Up to 20% of the real estate purchase may not even be real estate from a tax perspective.
6) All of this could potentially be segregate into shorter-life assets and deducted MUCH faster.

...because of bonus depreciation, most of this could be deducted in the year of PURCHASE rather than 39 years.
7) Test what deducting 20% of your real estate purchase price in Year1 does to your cap rate!

Large companies ALWAYS do this with their real estate.

Shouldn't you?
8) If you found this post beneficial give it an RT to make sure others benefit, too.

Grab my guide below for 60 more threads like this one, and save yourself $1,000s of tax or more per year! The price will never be this low gain so pick it up TODAY!

gumroad.com/l/MbBbDf

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More from @AskForTaxAdvice

22 Jan
How to get to ZERO income tax!

**NEW AND IMPROVED**

This will cover ANYONE in the WORLD.

HUGE VALUE!

THIS IS MY CURRENT TWITTER MAGNUM OPUS.

Bookmark this, print it out, mark it up, don't try to get through it all today, and

RT it so EVERYONE can benefit!!!

***THREAD***
Section 1: The basics

Income tax is based on income.

Wealth, sales, and ad spend don't attract income tax.

Your income/profit does, BUT not all income is taxable.

So first, if you want to get to ZERO income tax, you need to get to ZERO TAXABLE INCOME.
So how do you get to zero taxable income?

There are two ways:

Only be subject to jurisdictions that do NOT tax income.

OR

Only have income that your jurisdiction does NOT tax.

Let's give two examples of this:
Read 48 tweets
22 Jan
Tax Loophole Alert!

Here's how to pay ZERO tax on your real estate flips!

This is a great one!

Are you handy? Do you like interior design? Have you considered flipping residential real estate?

***Thread***
2) Buy your house to flip.

Move in. Literally.

Make repairs and upgrades. Do whatever you do when you flip a house.

Stay exactly two years (or more).

Sell for a huge gain.

Pay $0 tax on the gain!

Repeat every two years.

It's called the home sale exclusion.
3) If your sole income is from flipping residential real estate, you could have a 0% tax rate (US).

Insane!

Q: How many times can I do this?

A: Once every two years. No lifetime limit.
Read 5 tweets
21 Jan
How to make your child a $5 millionaire,

with NO TAX to them,

deductions for YOU,

on an amount less than a nice bar tab...

***Thread***
2) You need to be some type of business owner..

You need to employ your child so they can contribute to a ROTH IRA.

There are a few things you can employ your child to do.

On easy example is being a "model" in your business marketing materials (e.g. pics for advertising).
3) Create an employment contract with your child (for marketing materials, etc).

Pay your child up to $6,000/year (must be a market rate of pay). This is deductible to your business so net a couple $100/month.

Contribute this money to a ROTH IRA in your child's name.
Read 5 tweets
21 Jan
Tax Loophole Alert!

Save up to $500 of tax!!

Did you work from home in 2020?

So many of us did.

Did you have a business that you worked from home for?

Here's how to deduct expenses related to your HOME OFFICE.

***Thread***
1) You do not need a business entity (LLC, Corp, etc) to take deductions for your home office. You just have to be engaged in a profit seeking activity.

If you have a business - even a small side hustle - you just need to meet the following two requirements:
2) Space in your home should be used as:

- The principal place of your business.

- Used regularly and exclusively for your business.
Read 14 tweets
21 Jan
Tax Loophole Alert!!!

How to save $500 to $1,500 of tax per year by

DEDUCTING YOUR MILEAGE!

***Thread***
1) If you drove your personal car for your business in 2020, you can deduct $0.575/mile. Similar in 2021.

That is more than it sounds.

For example, if you drive 100 miles per weekend sourcing product from a few Walmarts, that 5,000 miles per year is a $2,875 tax deduction!
2) In lieu of mileage, you can track your actual expenses like gas, oil changes, repairs, depreciation, and allocate based on personal use.

This is a headache and the $0.575/mile might be more than you are actually spending, depending on the cost and fuel economy of your car.
Read 5 tweets
21 Jan
Are you feeling the NAGGING pain of getting ready for tax time?

I'm going to show you how to GET CAUGHT UP IN TWO HOURS to save you PAIN.

Did you start a business in 2020? Did you keep any books/records?

If your answer is "no," you aren't alone.

***Thread***
1) Your Business Income

Open a spreadsheet.

List all the platforms you sold on in 2020.

Have a link to the login page for each.

Pull your 2020 sales report and drop this number in.

Manually add any cash sales or platforms that don’t give you a report.
2) Your Business Expenses

Gather all receipts from major purchases.

Pull 2020 reports on every account you spend money on for your business (ideally you don’t mix business on personal on the same account. Ha!)

Quickly scan and mark anything you think is business.
Read 9 tweets

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